PHOTO: Finance Min Tweah and Liberian business people in the informal sector
By Edwin M. Fayia, III, edwinfayia@gmail.com
In economically stripped and poverty stricken Liberia, the COVID19 outbreak in this country is having grave negative impacts on the overall socioeconomic earnings of foreign and Liberian business entities and ordinary Liberians in terms of economic growth and progress.
In the largest business districts of Monrovia and Paynesville, small, medium and large commercial hubs are complaining of the downward trend of the Liberian economy to the extent that some of them are about to shut down their businesses.
With major ports of entry operating on the low side or shut down due to the rapid spread of the deadly Coronavirus that has claimed many previous lives, the prospect doesn’t look good both in the short and long run. World Bank and IMF forecast a negative growth rate next year.
Besides, the gateway to the shattered Liberian economy, Freeport of Monrovia at the moment is not in active business such as commercial ships anchoring with essential goods and services for even development support partners and commodities badly needed on the various Liberian markets.
Such a shutdown has rendered foreign and Liberian business entities especially importers unable to bring in the most needed commodities in the country thus escalating the prices of highly demanding goods and services on the various Liberian markets and institutions.
Amidst the economic pinch, commercial drivers in spite of the reduction in the price of petroleum products, continue to reject the adjustments and continue to hike transport fares on all the highways and feeder roads in the country.
With the grim prospect and the real challenges, constraints and financial hardships caused by the COVID-9 pandemic, economic managers and top officials of the Liberian government continue to boast of stabilizing the devastated and corruption-prune economy of the country.
The Liberian government officials recently pointed out in several official statements that the fact that civil servants salaries have been made current to June 2020, celebrations were in the making for that unsubstantiated economic achievement. This has however been criticized and dismissed by the opposition and many economic commentators in and out of the country.
Among some of the grave constraints confronting the transport sector are the deplorable roads, checkpoints extortion, intimidation and harassment by joint security personnel and on many occasions in recent times the uncontrollable hike in petroleum products in the country.
Regrettably, locally produced commodities from rural Liberia been conveyed by commercial drivers and other public service transport providers are being sold on the various markets in the country at very high prices, due to the hike in transport fares.
Principally, the Liberian dollar has for several decades suffered some humiliations at the hands of the powerful American dollar, thus depreciating it in terms of foreign exchange against other currencies around the world.
Well-placed socioeconomic players in and out of the country have reminded ordinary Liberians and greater business community that the economic conditions in Liberia are very bleak and grim. Reason they have propounded is the fact that Liberian economic managers are not performing to expectations and internationally acceptable standards.
But statements coming out of the World Bank and IMF have recently given the CDC government praise for putting in place some economic measures to promote fiscal discipline as well as implementing the salaries harmonization program in government.
In several parts of Liberia, comments and feedback from small, medium and large size business entities continue to present negative economic pictures of the Liberian economy. And as a result, such are indeed occasioned by constant acute shortages of critically needed commodities thus sparking uncontrollable hoarding and hikes at the detriments of ordinary Liberians.
In spite of some very minimum steps initiated by the Liberian Government against some unscrupulous foreign and Liberian business entities in term of warnings and fines, some players in the Liberian economic arena continue to hoard and hike prices of many goods on the Liberian markets.
For example, the informal sector and rural businesses are particularly feeling the pinch deeply. Some Proprietors of business entities have told www.newspublictrust.com from Liberia’s northwestern Lofa County that as a result of the grave economic challenges ranging from transport fares and foreign exchange impediments, there is serious decline in health of their businesses.
A related factor that poses serious challenges is the deplorable road, COVID19 restrictions and the acute shortage of commercial vehicles for the past several months thus creating shortages of imported commodities in that part of the country.